On Wednesday, what initially appeared as another usual sharp correction in the crypto market, suddenly turned into a less usual flash crash, once again marked by exchange outages and sharp rebound, while professional investors educate newbies, and Elon Musk claims that Tesla has not sold their bitcoin (BTC) holdings.
At 17:43 UTC, BTC trades USD 39,798, rebounding from USD 30,415, reached earlier today. The price is still down by almost 9% in a day. Ethereum (ETH) recovered from USD 2,051 to USD 2,839, trimming its daily losses to less than 17%. Other coins from the top 10 list are down by 13%-29% in a day.
“This will feel very uncomfortable for many traders and investors who are new to this high volatility area of the market and rightfully so, we’ve seen a lot of higher leverage positions be liquidated in a short span of time,” Jeffery Wang, Head of America’s at the Amber Group, said in an emailed comment.
This was “a large flushout,” Wang added, and if the market wants to continue higher it was “likely necessary to remove some of the froth from overleveraged positions.”
The next few days will be important to see how overall sentiment is, “a term we’ve heard repeatedly over the past 6 months is many traders wanted the opportunity to buy lower, ie buy the dip, so with the opportunity now upon us will see if people do put new money to work or if their stance has changed.”
In light of this massive drop across crypto markets, many in the Cryptoverse, such as FTX CEO Sam Bankman-Fried, have noted large liquidations across the board.
@elonmusk Are you referring to #bitcoin or Doge?
— Peter McW-BN (@PeterMcCormack)
Meanwhile, Cathie Wood, Chief Executive Officer and Chief Investment Officer at Ark Investment Management, a major investor in Tesla and Coinbase, told Bloomberg TV that BTC is “on sale” right now, although it is not necessarily at a bottom. Also, she estimates that BTC will hit USD 500,000 eventually.
Consider yourselves obliterated. https://t.co/lVl9idrp3p
— ∞ CO฿IE (@CryptoCobain)
Obvious warning signs of pain coming a month ago:
— Vijay Boyapati (@real_vijay)
@WClementeIII @glassnode Unprecedented opportunity in the midst of a #bitcoin bull market.
— Corey Wilson (@Dr_CoreyWilson)
— Mr. Anderson (@TrueCrypto28)
Literally the worst gas spike I’ve ever seen. https://t.co/SEYKsx8711
— Alex Svanevik (@ASvanevik)
Bitcoin correction update: -53% from last month’s high. $BTC https://t.co/utX4Puaxgb
— Charlie Bilello (@charliebilello)
This was not a black swan event. This was greed and stupidity leaving the market. Condition yourself to optimize for survival.
— limzero (@pleyuh)
time for the strong hands play!!! https://t.co/4ZKSVmjUPT
— BitBit.Calledit (@BitBitCrypto)
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